Financial Poise


  • October 11, 2021
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An Earn-Out is a part of the purchase price that may or may not be paid to a seller, depending on the performance of the business after a sale of the business closes. Earn-outs are employed when a buyer and seller disagree about the expected growth and future performance of the target company. Earn-outs are also common as a way to keep the sellers involved and motivated following the acquisition.